9193 - Horizon Pulp and Paper II

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Environmental & Social Review Summary

Project Number

9193

Company Name

HORIZON TSELLULOOSI JA PABERI AS

Date ESRS Disclosed

Feb 5, 2010

Country

Estonia

Region

Europe

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 24, 1999
Signed : Oct 15, 1999
Invested : May 18, 2000

Sector

Paper Tissue

Industry

Agribusiness and Forestry

Department

Regional Industry MAS LAC & EUR

Project Description

2
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name ESTONIA: Horizon Pulp and Paper 2

Region Europe

Sector Timber, Pulp and Paper

Project No. 009193

1. This project includes the second phase of the rehabilitation and modernization of Horizon Pulp and Paper located in Kehra, Estonia, east of the capital of Tallinn. The plant produces sack paper, sacks and tissue paper. The first phase of this investment, approved in 1996, included improvements in wastewater handling and treatment facilities, fiber recovery and installation of a bark boiler to replace an older oil shale fired boiler. These modifications are completed or nearing completion. This second phase includes further improvement of the Kraft paper mill and tissue converting facility, along with introduction of a waste paper collection system in Estonia. Total project cost is estimated at US$27.7 million. Environmental improvement measures to be included in this second phase investment include further improvements to the recovery boilers, lime kiln installation and digester house upgrading to further improve emission quality and conserve water and energy.

2. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The environmental review of this project consisted of review of information submitted by the project sponsor and technical review and site visits by IFC’s Technical and Environment Department staff. Key environmental, occupational health and safety issues that were of potential concern in this project and which were reviewed during appraisal include:
· forest management and harvesting practices and sustainability of forests and forest communities;
· air, water and solid waste emissions and management;
· handling of hazardous materials;
· fire protection and emergency response; and
· general worker health and safety.
Information on how these issues have been addressed is provided in the following paragraphs.

3. Estonia has developed a comprehensive framework for management of its forests. A National Forest Policy was passed in 1997, which recognizes the ecological values of the forests and encourages sustainable management and use of this resource. Application of both natural and artificial regeneration is resulting in a growing forest area and increasing wood production available for industrial use. The wood supply for Horizon Pulp and Paper is clearly being managed in a sustainable fashion.

4. The company has made good progress in controlling air emissions and current releases are below or close to the limits specified in the World Bank Group guidelines and within Estonian government regulations. The planned upgrading of the recovery boiler and related measures will further contribute toward minimizing air emissions. One power boiler has already been converted to use natural gas, and the second boiler will also be converted. The sponsor will ensure that all emissions will meet World Bank Group guidelines.

5. Wastewater is subject to treatment in an activated sludge treatment plant, which is working well and producing effluent which is well within world Bank Group guidelines. No significant impacts on the Jagala River are expected.

6. Solid wastes are currently landfilled in a municipal facility near the plant. When the bark boiler comes on line, much of the bark and other waste currently going to the landfill will be burned in this facility, reducing the load on the landfill considerably. Installation of the lime kiln will also eliminate the disposal of lime sludge.

7. Although this is an old plant, the buildings and equipment are generally well maintained and in good order. Housekeeping is good throughout the facilities. However, storage for chemicals, fuels and lubricants could be improved through provision of proper containment in many cases. Asbestos has been used in earlier years as insulation, and the company is aware of the dangers of this material and is taking appropriate action to replace it with suitable material.

8. Fire protection facilities, including fire extinguishers and hydrants, are lacking or in poor condition in many areas throughout the older parts of the plant. As a condition of disbursement, the sponsor will undertake a review of fire protection needs and will develop a plan for installation of needed equipment as part of this project.

9. Occupational health and safety conditions are generally good. The company will undertake noise monitoring in the workplace and will ensure that workers wear appropriate hearing protection around noisy equipment. The company has both environmental and health and safety departments to handle compliance in these areas, and appropriate training programs are provided.

10. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by the sponsor and by conducting periodic supervision.

11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that this proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.

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October 7, 1998 5:09 PM

Environmental and Social Mitigation Measures

Broad Community Support

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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